SAN FRANCISCO (Standard&Poor's) May 11, 2009--Standard&Poor's Ratings Services said today that Edison International's (BBB-/Stable) disclosure May 8 that it has favorably concluded its settlement with the Internal Revenue Service (IRS) (an outcome we expected) will not affect the company's ratings or outlook. The settlement addresses tax issues dating from 1994 through 2002 and also importantly resolves tax obligations of subsidiary Edison Funding Co.'s (BB+/Stable/B) cross-border, leveraged leases. We expect the settlement to result in a net cash flow benefit to Edison International of about $325 million to $400 million that it will realize over the next several years. Cash tax obligations that the company will pay under the settlement to the IRS will be offset by
